Econ 252 - Study guides, Class notes & Summaries

Purdue | Econ 252 | Dr. Vargas | Exam 1 Questions and Answers 100% Pass Economic Agent Any group or individual that makes choices. What is Economics the study of? How agents make choices among scarce resources and how those choices affect society Scarcity A situation of having unlimited wants in a world of limited resources When are resources scarce? Resources are scarce when the quantity that people want exceeds the quantity that is available Positive Economics Describes what people actuall...

Purdue ECON 252 Exam 2 Questions with 100% Correct Answers | Verified | Latest Update 2024 | 100% Pass| Rated A+ capital accumulation - the growth of capital resources, including human capital. when a country saves more, this grows faster. aggregate investment - savings rate x GDP political creative destruction - the process in which economic growth destabilizes existing regimes and reduces the political power of rulers. creative destruction - refers to the process by which new technologies ...

QUESTIONS AND ANSWERS

Econ 252 Exam Questions With Correct Answers | 100% VERIFIED Statements that claim to describe the way things are: - ANSWER- are positive statements can be tested for accuracy Both B and C above In determining how to use their resources, resource owners are motivated by: - ANSWER- self-interest Produced goods that are used in the production of other goods are: - ANSWER- capital The basic goal in dealing with the problem of scarcity is: - ANSWER- to produce as much consumer satisfacti...

Econ 252 Exam Questions With Correct Answers | 100% VERIFIED Statements that claim to describe the way things are: - ANSWER- are positive statements can be tested for accuracy Both B and C above In determining how to use their resources, resource owners are motivated by: - ANSWER- self-interest Produced goods that are used in the production of other goods are: - ANSWER- capital The basic goal in dealing with the problem of scarcity is: - ANSWER- to produce as much consumer satisfacti...

Recession - episodes of negative economic growth lasting at least two quarters Expansion - a period of positive growth. Expansions are periods between recessions. Co-movement - Many aggregate macroeconomic variables grow or contract together during booms and busts, exhibiting a pattern of positive or negative co-movement. Variables such as real consumption, real investment, and employment move positively with real GDP: Pro-cyclical. Variables such as unemployment move negatively real GDP...

capital accumulation - the growth of capital resources, including human capital. when a country saves more, this grows faster. aggregate investment - savings rate x GDP political creative destruction - the process in which economic growth destabilizes existing regimes and reduces the political power of rulers. creative destruction - refers to the process by which new technologies replace old ones, new businesses replace established companies, and new skills make old ones redundant. rev...

QUESTIONS AND ANSWERS

Econ 252 Exam Questions With Correct Answers | 100% VERIFIED Statements that claim to describe the way things are: - ANSWER- are positive statements can be tested for accuracy Both B and C above In determining how to use their resources, resource owners are motivated by: - ANSWER- self-interest Produced goods that are used in the production of other goods are: - ANSWER- capital The basic goal in dealing with the problem of scarcity is: - ANSWER- to produce as much consumer satisfacti...

world price the price of a good that prevails in the world market for that good tariff a tax on goods produced abroad and sold domestically internalizing the externality altering incentives so that people take account of the external effects of their actions externality the uncompensated impact of one person's actions on the well-being of a bystander Coase theorem the proposition that if private parties can bargain without cost over the allocation of resources, ...